Unit 8 Reporting

Unit 8: The Marketing Mix as a Business
Strategy
Lesson 1: Product
The implementation of any business will not be complete without the corresponding
marketing approaches that should be performed by the entrepreneur. Developing an
effective marketing strategy would never be a piece of cake for any entrepreneur. This is the
reason why any business has to re-evaluate its activities from time to time.
In this lesson, you should be able to do the following:

● Learn the concept and usage of the marketing mix in entrepreneurship.
● Acquire knowledge as to the different stages of product development.
DepEd Competencies
● Recognize the importance of marketing mix in the development of marketing
strategy.
● Describe the Marketing Mix (7Ps) in relation to the business opportunity vis-à- vis
product.
The Traditional 4Ps and New 7Ps
The original components of the marketing mix were four different yet interrelated variables.
Such a framework was used for marketing decision-making of any form of business. The
essential pillars of the traditional 4Ps are product, price, place , and promotion , which
were all used in gauging the businesses’ ability to exist in a competitive marketing
landscape. Each of the 4Ps is governed by several internal and external factors that help in
assessing any potential roadblocks that would lead to the falling of any form of busine
Product
A product refers to any item that is produced to satisfy the needs and demands of a
certain
group of people. It has a life cycle that revolves around its growth, maturity, and
after-sales
performance.
Essential Questions
To avoid experiencing a sales decline in any product being offered, it is vital to
incorporate a
marketing strategy that will stimulate the demand of the consumers towards the
product
itself. In some cases, It may be a wiser decision to broaden the current product mix
by
expanding the existing product line. In developing the right type of product for the
target
market, the following questions must be addressed:
● What do the consumers want from the product?

● In what way will the consumers use the product?
● What additional features should the product have to address the needs of the
consumers?
● What should be the name or brand of the product?
● How does the product differ from the products of the other competitors?
Unique Selling Proposition
A common denominator that is used in weighing several products is called the
unique
selling proposition. This statement helps in improving the market position of a
business
within the industry and allows it to stand out in the competitive market. A lot of
products
these days have no clear competitive advantage in the market. With this kind of
situation,
differentiation is a vital aspect that must be established by any business. This is
where a
unique selling proposition plays an important role. It provides the ultimate
advantage that a
product has to offer, the means of delivering on that advantage, and the
commitment to
provide such an advantage to the consumers. It aims to answer the ultimate
question -
“What makes the business different from its other competitors?
Unique Selling Proposition

A common denominator that is used in weighing several products is called the
unique
selling proposition. This statement helps in improving the market position of a
business
within the industry and allows it to stand out in the competitive market. A lot of
products
these days have no clear competitive advantage in the market. With this kind of
situation,
differentiation is a vital aspect that must be established by any business. This is
where a
unique selling proposition plays an important role. It provides the ultimate
advantage that a
product has to offer, the means of delivering on that advantage, and the
commitment to
provide such an advantage to the consumers. It aims to answer the ultimate
question -
“What makes the business different from its other competitors?”
Tip
When creating a unique selling proposition, a business must
primarily focus on the main factor that sets it apart from other
competitors.
Product Classifications
Products can be classified into three different categories:
Tangibles
Tangible products are those items that have actual physical presence. The benefits
of these
products can be evaluated based on visual comparisons. One of the primary keys in
marketing tangible products is providing the consumers with the benefits they are
looking
for. These people are not primarily concerned with the features of a product
because they
are always after the benefits it provides. If a school supplies store is selling a
ballpen with an
equipped eraser, such a feature will only become a benefit if a student is prone to
making
corrections whenever he uses a ballpen.
Intangibles
Intangible products are those items that have no physical presence and can only be
felt
indirectly. Under this classification are the virtual intangibles, which can be digitally
found
and accessed by using a computer. Selling an intangible product would be harder
than
selling a tangible one. The real challenge behind this is to be able to relate to the
emotions
of the consumers since intangible selling is emotional selling.
Strategy Development
Businesses often decide on effective strategies prior to the creation of a new
product. Those
who already have investors would want to minimize the risks involved to avoid huge
losses.
On the other hand, there are those businesses that must innovate or produce new
products
frequently to prevent being surpassed by their competitors.
Generation of Ideas
The ideas or concepts in developing a new product may come from various sources
and not
only from the upper management itself. Start-up ventures tend to lean on the
information
gathered from market research that is generally focused on the demands of the
consumers.
Screening and Evaluation
All ideas generated must go through proper evaluation wherein their feasibility is
being
determined. There are also ideas that do not resonate well with the core objectives
of the
business.
Business Analysis
During this phase, the ideas thrown in become subject to a more rigorous analysis.
Other
factors, such as profit projections, risks involved, and consumer feedback, are
likewise taken
into consideration. In this stage, the entrepreneur finds out whether the proposed
product
is commercially profitable or not.
Product Development
It is during this stage that the product is introduced to the market. The production
department will be tasked to produce and deliver the product to various
intermediaries, and
the marketing department will be tasked to take care of the branding of the
product. In
every industry, however, it is required that the new product must adhere to the
quality
standards set by the law.
Market Testing
Businesses adopt different approaches to testing the new product. In most
situations, test
marketing involves the introduction of the new product to a small market. If such
launching
were successful, then it would be introduced to larger market size. However, if the
approach
conducted turned out to be a failure, then the business concerned will make new
changes
or improvements in the product.
Commercialization
If the outcome of the previous test marketing were successful, the business would
introduce
the product to a larger market, either locally or internationally. This is the phase
where
advertising or marketing tactics would play an essential role. Mass media
advertising may
be implemented, and digital marketing may likewise be performed as another
advertorial
resort.

Strategy
Lesson 2: Place
DepEd Competencies
strategy.
place.
Distribution Channels
With the growth of industrial specialization as well as continuous improvements in
the
modes of transportation, distribution channels have become broader and more
accessible.
Since then, placement or distribution strategies became vital in the overall
operations of a
business.
A distribution channel contains a set of interdependent organizations that are
involved in
the process of making a product or service available to the end consumers. Why do
businesses give intermediaries or distribution channels the job of selling their
products?
Affiliating with an intermediary would mean letting them control the management,
pricing,
and marketing of a product. The answer behind this lies in the efficiency of
distribution costs. Various distribution channels have expertise in the selling aspect
of products. They
have sufficient connections, a competent workforce, and a large scale of operation
that
would provide the business higher revenue compared to a manufacturing business
that
runs its own sales operations.
Remember
A distribution channel contains a set of interdependent organizations
that are involved in the process of making a product or service
available to the end consumers.
Types of Distribution Channels

The following are the four major types of distribution channels:
Direct distribution
In this type of distribution channel, the manufacturer or producer directly distributes
the
product to the end consumer. The manufacturer has complete control over all
aspects of
selling the product. In today’s digital era, many manufacturers are resorting to
online
marketplaces as one of the ways to sell directly to consumers.
Indirect distribution
Any business using an indirect distribution channel will always employ selling
through an
intermediary. Generally, the business will sell its products to a wholesaler who
further
reaches out to a retailer to target more consumers. Large manufacturing businesses
or
producers often adopt this kind of distribution channel to be able to reach out to a
broader
market.
Dual distribution
The dual distribution channel involves a combination of direct and indirect selling
strategies.
Businesses may opt to sell their products directly to the end consumers, and they
may also
reach out to several intermediaries at the same time. The main objective of using
this type
of distribution channel is to be able to provide access to more consumers despite
the presence of channel conflicts. There may be inconsistencies regarding the
image of the
product, and varied selling prices may begin to take hold.
Types of Intermediary
Intermediaries are the middlemen who play a vital role in the distribution of
products to the
market. There are four main kinds of intermediaries in the distribution process:
Wholesaler
A wholesaler is engaged in the buying and handling of goods in bulk or large
quantities,
which are subsequently sold to retailers in various areas. In a typical advanced
economy
setup, large businesses have a wholesaling concept involved in their distribution.
Retailer
Following the indirect distribution channel, retailers are the final point of contact in
the
distribution channel. Individuals engaged in retailing typically purchase goods at a
low price,
which are then resold for a higher price to earn a profit. Nowadays, retailers are
found
through storefronts, online marketplaces, or both.
Distributor
The primary role of a distributor is to obtain products from the manufacturer itself
and
distribute it to various retailers and other endpoint locations. One advantage of
engaging
with a distributor is the efficiency of costs involved with regard to the shipping of
products
and other materials needed.
Agent
Agents or brokers are different from other intermediaries in the sense that they are
not
entitled to take ownership of the products. Their core service typically revolves
around
bringing buyers and sellers together towards a negotiation process. In most cases,
agents
earn money through commissions and fees paid for their services.
Distribution Strategies
Every business has varying products that entail certain requirements for
distribution. The
following are strategies used by businesses in distributing their products to the end
consumers:
Intensive distribution
In this kind of distribution strategy, products are distributed to as many retail
outlets as
possible. Low-priced products such as gums, candies, and other basic supplies are
oftentimes distributed using this approach. Retailers handling these goods benefit
from
their sales since consumers are not required to do thorough research before making
a
purchase.
Selective distribution
Luxuries and other products that are upscale in nature are primarily distributed
through
selected channels. A selective distribution strategy is usually a middle-ground
option for
businesses. Products are distributed to a selective number of outlets, but not as
many as
those with the intensive distribution strategy.
Exclusive distribution
When products are being sold to only one specific retailer, the exclusive distribution
strategy
is being employed. With this strategy, the retailer has exclusive rights to sell the
products of
a business. This kind of distribution is primarily followed by businesses selling
specialty and
high-end products.

Strategy
Lesson 3: Product Pricing
DepEd Competencies
strategy.
price.
Implementing a proper pricing strategy is not that easy. Therefore, any business
must make
sure that the following objectives of proper pricing are met:
● being able to attain the financial goals of the business
● being realistic and befitting the realities of the economic situation in the
country
● resonating well with the other elements of the marketing mix
Pricing as a Marketing Activity

Product pricing is significant in any business model because it signifies the
capability of an
entrepreneur to assess the value that consumers see towards the products and
services
offered. While the other variables of the marketing mix are concerned with costs,
product
pricing is the only one that affects revenues. It is one of the many factors that will
lead to a
business’s success or downfall.
Price adjustments may affect the overall operations of a business, and it might bring
out a
profound impact on the sales and demands of any product. A price that is not
properly set
by the business can be a reason for the decline in sales. Another conflict occurs
when the
business fails to set a price that is consistent with the other variables of the
marketing mix.
For instance, if a product is regarded as luxurious, a high price must be provided to
let the
customers know that it is made of high-quality materials.
Five Common Pricing Strategies
A pricing strategy pertains to the method of setting the best and accurate price for
a specific
product or service. A number of strategies are employed by businesses for profit
maximization and higher returns on revenue.
Cost-plus pricing
A cost-plus pricing strategy primarily focuses on the total costs attributed to
producing the
product of service. It is otherwise known as a mark-up pricing strategy because
businesses
increase the prices of their products before they are sold again to the end
consumers. In
arriving at a selling price, businesses oftentimes calculate the costs for producing a
product,
which will be multiplied by the sum of 1 and the mark-up amount.
Example:
An entrepreneur started her own clothing line. She needed to calculate the selling
price for
a long sleeve shirt. The following are the costs for producing the shirt:
1. material and labor costs = Php 400
2. overhead costs = Php 200
Remember
Pricing is the only revenue-generating element in the marketing mix;
that is why it is firmly linked with the revenue streams of any
business.
Five Common Pricing Strategies

A pricing strategy pertains to the method of setting the best and accurate price for
a specific
product or service. A number of strategies are employed by businesses for profit
maximization and higher returns on revenue.
Cost-plus pricing
A cost-plus pricing strategy primarily focuses on the total costs attributed to
producing the
product of service. It is otherwise known as a mark-up pricing strategy because
businesses
increase the prices of their products before they are sold again to the end
consumers. In
arriving at a selling price, businesses oftentimes calculate the costs for producing a
product,
which will be multiplied by the sum of 1 and the mark-up amount.
Example:
An entrepreneur started her own clothing line. She needed to calculate the selling
price for
a long sleeve shirt. The following are the costs for producing the shirt:
1. material and labor costs = Php 400
2. overhead costs = Php 200
The total cost adds up to Php 600. If the entrepreneur decides to have a mark-up
amount of 50%, the selling price will be calculated through this formula:
Selling price = 600 (1+50%)
= 600 (1.50)
Selling price = Php 900
Thus, the selling price for a long sleeve shirt should be Php900.
Tip
The cost-plus pricing strategy can be used by any business, most
especially those that belong in the retail industry. It doesn’t require
any thorough research since the business would only need to
determine the overall production costs of a product and set a
mark-up price.
Competitive pricing
A competition-based pricing strategy pays attention to the prices currently existing
in the
market. This strategy focuses on the prices set by the competitors in the industry as
its point
of reference. Businesses who belong to an oversaturated industry may take
advantage of
this pricing strategy, because even the slightest bit of price difference may be a
factor for
the consumers in making purchasing decisions.
Value-based pricing
This pricing strategy is used by businesses that focus on the consumers’ responses
towards
a product or service offered. This pricing strategy is beneficial for businesses
producing
products that are highly appreciated by the consumers, ignoring the presence of
other
cheaper alternatives or substitutes.
Price skimming
Price skimming is a strategy used by businesses when introducing new products or
services
to the market. This pricing strategy is executed by setting high prices for new
products and
services. These prices will only gradually decrease as soon as competitors offer
similar
products to the market. Oftentimes, electronic devices, and other technology
products are
priced using this strategy. Smartphones and laptops are initially priced with this
strategy
until the time that they already become less relevant in the market.
Penetration pricing
In contrast to price skimming, the main objective of a penetration pricing strategy is
to
obtain market share. Products and services by businesses are typically offered at
low prices,
effectively drawing out the competition in the market. However, penetration pricing
is not
recommended in the long run, for it can damage the profitability of the business.
Categories of Pricing Issues

Pricing strategies may come out and may oftentimes be perceived as quite blurry,
especially
from the point of view of ordinary consumers. There are certain situations that are
regarded
as grey areas in the pricing structure of most businesses.
Buyer-seller interactivity
In some cases, prices were not definitely set by business owners. The amounts
displayed in
stores are not even the actual prices that buyers have to pay. Rather, prices have to
be first
negotiated during an interaction between the seller and the buyer. Therefore, if a
product’s
price resulted from the buyer-seller interactions of various negotiations, such has to
be
called an interactive price, which is one that is agreeable to both parties.
Price discrimination
When a product is sold at different prices to different consumers, it is called price
discrimination. From the perspective of any business, price discrimination may
present
several advantages, most especially profit maximization.
Price format
This pricing issue involves how a price is expressed to the market. For instance,
classic
advertisements used to show prices in round numbers, such as Php 100, Php 200,
and so
forth. Nowadays, however, businesses adopt the practice of pricing a product a cent
or two
below the round number (Php 99.99 or Php 199.99), which has the psychological
effect of
lowering the leftmost digit. As a result, it may make the price appear lower than it
actually is
and could have a positive impact on sales.
Opportunistic pricing
Well-known businesses and some luxury brands may have the opportunity of
charging a
hefty price to their products. Opportunistic pricing is oftentimes used to drive
competitors
out of the industry based on efficiency. The middle ground comes when there is a
special
situation, such as a natural disaster, that calls for the need for these products. In
this
situation, opportunistic pricing may become unethical.
Wrap Up
_____________________________________________________________________________________
______
● Product pricing is significant in any business model because it signifies the
capability of an entrepreneur to assess the value that consumers see towards the
products and services offered.
● A pricing strategy pertains to the method of setting the best and accurate price
for
a specific product or service.

Strategy
Lesson 4: Product Promotion
DepEd Competencies
strategy.
promotion.
When talking about the communication aspect of the marketing mix, promotion is
the only
element that can address it. Its primary aim is to attract the customers’ attention,
as well as
provide useful information about the product to build interest and loyalty. Among all
elements in the marketing mix, businesses tend to complement promotional
activities with
placement strategies to be able to reach their target audience.
The following are the fundamental objectives of creating a promotional plan:
1. To create brand or product awareness . Creating brand awareness forms an
integral part of every promotional activity of a business. Oftentimes, it may also be
needed in times of rebranding situations to avoid the downfall of any product.
2. To generate demand . Part of generating demand is increasing the sales
performance of a product through promotion. It is likewise important to re-engage
existing customers and encourage new ones in trying out the product.
3. To differentiate a product from its competitors . In situations where an
industry is
oversaturated, any business may adopt effective promotional strategies to make its
product stand out in the market. The technique here is to focus on functionalities or
benefits that are not yet offered by other competitors.
Five Main Components of Promotional Mix
There are five major components that make up the promotional mix. These
components are
implemented to ensure that a clear message is delivered to the customers. A
business may
opt to use any or a combination of the following:
Advertising
This promotional method is used to create awareness and deliver information to the
target
audience. Traditional forms of media include television, newspapers, magazines,
and
billboards. Nowadays, however, people continue resorting to digital media as a way
of
promoting their products and/or services.
Personal Selling
One of the effective ways to persuade potential customers is through personal
selling.
Generally, this method is adopted by salespersons in managing personal customer
relationships. Personal selling is executed by means of sales presentations, sales
meetings,
sample distribution, and telemarketing.
Sales Promotions
Sales promotions include both media and non-media tactics used to increase the
demand
towards the products and/or services offered by any business. These are usually
done for a
short period of time for the main purpose of stimulating market demand. Sales
promotions
can be implemented through coupons, contests, product samplings, trade shows,
and
exhibitions.
Public Relations and Sponsorships
In maintaining a sustainable relationship between the business and its customers,
public
relations tactics are executed. This component of the promotional mix is used for
attaining
long-term effects. Any form of publicity is accomplished to increase awareness of
any product. Some examples that are still used nowadays are talk shows, blog
mentions, events
sponsorship, and distribution of samples to influential people.
Direct Marketing
Direct marketing allows any business to communicate freely with its customers.
Marketing
techniques such as mobile messaging, distribution of flyers or catalogs, and outdoor
advertising are a few examples of direct marketing. This promotional method is
executed
without the interference of any kind of intermediary. Potential customers are
likewise
targeted based on varying attributes or buying behaviors.
Promotional Marketing in the Digital Era
Running a business became more cost-effective because of digital marketing.
Various
advancements in technology have enabled a lot of entrepreneurs and businesses to
communicate with their customers easily. Unlike the conventional form of
marketing, digital
marketing offers beneficial features that aim to provide convenience and efficiency
to any
kind of business.
Social Media Marketing
Many businesses are utilizing different social media platforms to communicate their
products and services to their target audience. Through the use of digital media,
consumers
have the opportunity to access any information relating to a business’s products or
services.
Content Marketing
Content can be presented in various formats, including blogs, e-books, how-tos,
online
articles, forums, and so forth. This promotional strategy aims to attract new and
potential
customers by creating and sharing valuable information. Content marketing helps
every
business establish rapport with their target audience through the creation of reliable
and
accurate information about their products and services.
Affiliate Marketing
Affiliate marketing takes into account the presence of third parties who are
responsible for
giving commissions or rewards to their affiliates. This is a type of performance-
based
promotional strategy at which payment is generated through the sales and
marketing
efforts of the affiliates. Payable actions may be based on conversions, promotions,
and
leads.
Email Marketing
Email marketing is a relatively low-cost promotional strategy that aims to build
brand and
customer loyalty. One beneficial means of employing this strategy is creating
different email
lists to be able to target different audiences based on several factors, such as their
preferences and dislikes. Generally, email marketing is used by businesses to
enhance its
relationship with its existing customers and to be able to attain repeat business.
Search Engine Optimization (SEO)
Search engine optimization (SEO) is an umbrella term for the different methods
used in
increasing the visibility of a website or blog online. It considers different kinds of
search,
including image search, news search, and video search. This technique is used by
different
businesses that seek to increase the number of visitors viewing their website and
content
online.
Strategy
Lesson 5: People
DepEd Competencies
strategy.
people.
Example: Case Analysis of a Workforce Issue
Situationer:
A fast-food chain has over 600 (and growing) branches in the Philippines. Some
branches
operate round the clock, while others have specific operating hours. A customer
ordered
from a store at 3 a.m. in the morning, but the cashier made several mistakes in
taking her orders. The customer got furious, but the cashier asked for an apology
and reasoned out
her work exhaustion as an excuse.
1) What seems to be the root cause of the problem in the said scenario?
One problem could be attributed to the working schedule given to the employees of
the
store.
2) How should the store manager address such conflict?
The store manager should focus on employing staff who are amenable to work on a
night
shift schedule. Likewise, he must ensure that there are at least three employees
working for
the same position on different shifts.
3) What should be done to avoid the recurrence of such a problem?
The manager or the person-in-charge of hiring employees should first assess the
qualifications of each and every applicant. The person-in-charge must provide the
complete
details of every position to ensure the applicant's preferred working schedule.
Remember
As a component of the marketing mix, people are those relied on by
the business to design, develop, manufacture, and produce products
to the end consumers.
Recruitment Methods
Industries change very rapidly, and businesses have to adjust their objectives and
competencies to survive in a competitive landscape. One of the effective measures
to target
these objectives is to promote or recruit people who have the ability to lead the
business
towards success. There are two main approaches to recruitment: internal and
external
recruitment, equipped with their own advantages and disadvantages.
Internal recruitment
Internal recruitment is the process of filling vacant employment positions by the
employees
who are already working within the business premises. In other words, it is
understood as
the recruitment approach taken by businesses where its existing workforce are
referred to
other available and suitable posts. The following are the common methods of
internal
recruitment:
Promotions
This method of internal recruitment pertains to the act of qualifying a group of
employees
to higher positions by assessing their work performance. It aims to shift any
employee from
a lower position to a higher one with more responsibilities attached, remuneration,
and
ranking privilege. Further, a promotion may be granted to an employee on the basis
of
merit, i.e., his skills, work efficiency, productivity, knowledge, and past employment
record.
This recruitment process is highly preferred by most businesses, for it is an effective
approach to motivate employees to improve their performance.
Transfers
Transfer pertains to the process of moving from one job to another without any
marked
changes in rank and work responsibilities. In most cases, it involves the shifting of
an
employee from one department to another, depending on the qualifications of the
position
involved. One major benefit of adopting this method is being able to preserve the
cordial
relationship between employees, and it also avoids monotony in the work of any
employee.
Employee Referrals
With this approach, current employees may refer people who they think are suitable
or fit
for the job. This is adopted by most businesses, for it saves cost and time compared
to
hiring people from various external sources. In some situations, referral fees are
given in
the form of incentives for each successful hire.
External Recruitment
This type of recruitment refers to the hiring of employees outside the business.
Applicants
seeking opportunities have no connection with the internal affairs of the business.
One
major advantage of external recruitment is having the chance to bring innovative
ideas
carried by the new applicants. Here are some examples of external recruitment
methods:
Employment Agencies
Employment agencies are typically run by public, private, and government sectors.
These
sectors maintain a database where vital information of qualified candidates are
stored and
kept. These pieces of information, for a cost, are then transmitted to employers
seeking
individuals who will fill in their vacant positions.
Advertisements
Recruiting through advertisements is very popular and much preferred by a lot of
employers. Job vacancies are thoroughly described and announced through
different print
and electronic media. Nowadays, employers resort to posting job vacancies online
for a
proper and more sequential pooling of qualified applicants.
Walk-ins
This direct form of external recruitment is done when prospective candidates are
invited to
apply for any job vacancy. In this case, a definite date, time, and venue of the
interview are
given to the candidates without the need to submit their applications in advance.
Motivated Workforce
Motivation pertains to a person’s direction to behave or act in life. In the
entrepreneurial
aspect, managing motivation is a critical aspect of the success of any business.
Every
employer must motivate its employees by setting an example and identifying what
the
employees really desire like the examples below:
Acknowledge any employee’s achievement.
Every individual wants to be recognized for something that he or she has
remarkably done
or made. A simple act of acknowledgment from the higher-ups will mean a lot to
any
employee.
Offer employee rewards.
Always remember that employees will stay in business if they have a reason to.
Starting an
incentive program will keep them motivated and will help them stay focused. This
program
may include bonuses, profit-sharing arrangement, or even a commission structure.
Proper Customer Service
It must be remembered that a great business is one that provides excellent
customer
service. To be able to give this kind of service, a group of high-caliber employees
must be
present to answer or resolve the queries of the customers and to make sure that
they are
getting their money's worth.
Since there are identical products offered in the market, the people behind the
customer
service can serve as a differentiating factor for any customer. They have to be
equipped with
skills and knowledge about the specifications of products and services offered by
the business.
Training and Development
Training and development primarily deals with the acquisition of know-how,
techniques,
and strategies needed in performing a specific work. This is one of the essential
aspects of
human resource management as it helps in enhancing the existing skills of an
employee.
Below are some benefits that training and development programs provide:
Resolves any weaknesses
A training and development program may help to instill in the employees the
required skills
and knowledge needed for a specific job. Through this, businesses will be able to
resolve
any weak points existing among their employees.
Boosts employee satisfaction
When a business invests in its employees, it signifies that they are highly valued
and looked
up to. Besides, a training and development program results in a supportive
workplace.
Increases work productivity
The productivity of an employee generally increases when a business executes
training
programs. In most scenarios, there would also be an increase in efficiency that will
lead to
the success of any project.
Strategy
Lesson 6: Product Packaging
DepEd Competencies
strategy.
packaging.
What definite role does packaging play in marketing, then? For a typical shopper in
a
supermarket, the only way for consumers to notice any product is through store
displays,
shelves, point-of-purchase displays, and product packaging. A great deal of making
purchase decisions is allotted to color testing and psychological manipulation. In
short,
some consumers are easily influenced by the external features of a product. This is
precisely
the role of packaging in marketing—it can be used as a tool to encourage or
persuade
consumers to purchase a product.
Elements of Product Packaging
A packaging that is well-designed allows a product to be marketed to the
consumers easily.
Because of this, it is important to carefully scrutinize all the elements that make up
a
product packaging.
Visual elements
During the process of package designing, it must be remembered that consumers
assess
product packaging in their own different ways. One major component of this
element is
graphics, which include image layout and typography. Graphics refers to the visual
representation of a product packaging in the form of artwork or design. When
consumers
recognize a product in the supermarket, the positioning of a packaging’s graphics
may be a
vital factor in helping them make a purchase decision.
Color combinations
Color combinations are also part of a packaging’s visual elements. Color is a key
element of
design because it is an important consideration in brand awareness and recognition.
An
excellent color combination has the ability to make a product stand out from the
competition. In the case of food packaging, color may likewise influence the
perceptions of
consumers toward any product.
Informational elements
The inclusion of necessary product information is also important in product
packaging. This
has to be communicated to the consumers to help them in making the right
purchase
decision.
Why do you think product packaging plays a vital
role in marketing?
The “healthy lifestyle” bandwagon is becoming more rampant each day as people
and
businesses continue to develop healthier food alternatives. Because of this, the
trend of
consuming healthy food has expanded the importance of including the product’s
nutritional
information in its packaging.
Another key component of information elements is technology image. The
technology is
vital to the creation and designing processes of any product packaging. Its role is to
be able
to meet the required specifications of the consumers. Technology image, as a
communication element, should be transmitted to the consumers visually to
activate their
attention toward the product.
Functions of Packaging
Packaging performs different functions in several aspects:
1. Protection - One of the main reasons why a product is always wrapped or
bottled is to
protect it from external and environmental factors. Packaging performs a big role,
most
especially in the logistics aspect. It aims to protect the product from moisture, light,
temperature, and other external conditions.
2. Information - The packaging must contain essential pieces of information about
the
product, such as nutrition content, usage directions, ingredients, and storage
instructions.
3. Convenience - Part of the normal operations of a business is to store, transport,
and
distribute its products to the end consumers. These products will be handled in
different
ways by several intermediaries. A product that is well-packaged will surely provide
convenience to the end consumers.
4. Security - A product that is sealed perfectly has higher chances of being bought
by a
consumer. To make sure that products are stored in excellent condition, packaging
must be
taken into consideration. Apart from the fact it prevents the occurrence of pilferage,
products that are secured will be free from any kind of alteration. Moreover,
packaging also
acts as a deterrent to any act of tampering.
Packaging as a Marketing Tool

Product packaging can serve as a useful tool in the marketing strategies of a
business. A
good packaging strategy will enable the business to persuade the consumers to buy
the
product. A purchase decision of a customer usually comes in a split second impulse
if he
finds a product with striking packaging. The following can be the results if the
product
packaging is used as a marketing tool:
1. Brand recognition - The proper combination of color themes and well-designed
graphics
in product packaging is deemed to be effective in keeping a product in the limelight.
Amidst
a store’s typical approach of storing identical products in the same row, good
product
packaging will help any product stand out from the competition. To succeed, the
number
one objective of any business when it comes to packaging must be to grab the
attention of a
consumer.
2. Product Identification - Sticking to packaging that represents the main colors
of a brand
will help the customers identify the product when shopping at their favorite store.
Packaging helps buyers quickly identify the product, enabling them to adopt a
repeat
purchase behavior.
Strategy
Lesson 7: Product Positioning
DepEd Competencies
strategy.
positioning.
Product Positioning in Marketing Mix

Product positioning pertains to the basic marketing tool that businesses use to
improve
sales by targeting a product to a particular group of people. This tool is used to
highlight the
benefits and distinct features of a product. Entrepreneurs position their products in
the
market by creating a good image on the basis of their intended audience.
Through product positioning, a product is able to occupy a unique spot in the minds
of the
consumers that will help them in making a final purchase decision. Basically, it aims
to instill
in the minds of the consumers what a product has to offer compared to its
competitors.
One might argue that when a product contains all essential attributes demanded by
a
consumer, then product positioning should not be taken into account anymore.
However,
people are all unique, and consumers have different needs and want toward a
product.
Thus, in a complex world full of business strategies, positioning takes a very
significant role.
In the entrepreneurial aspect, product positioning has two basic thrusts. First off, it
aims to
determine the needs and demands of consumers so that a business will be able to
place its
bet on a profitable market opportunity. Second, product positioning analyzes the
positioning of other competitors so that a business will be able to take various
courses of
action to stand out in the competition. It simply helps any business in devising ways
to
differentiate their product offerings from that of the other competitors.
Segmentation, Targeting, and Positioning (STP) Model

It is a basic tenet of marketing that before any business can position its product, it
must first
analyze its target market and determine the needs and wants of its intended
audience. The
segmentation, targeting, and positioning (STP) model is a marketing
framework that
guides a business toward the development of a successful product positioning
strategy.
Segmentation
To properly position a product in the market, market segmentation helps in
classifying
groups of people based on common characteristics and preferences. This is a cost-
effective
approach that will provide huge benefits to a business in dealing with its
competitors.
Consumers can be divided according to the following factors:
1. Demographic - This is a basic approach in classifying or grouping people based
on
age, marital status, gender, ethnicity, education, and profession/occupation.
2. Geographic - This is a common way of dividing people based on their country,
region, city, and zip codes.
3. Psychographic - This factor refers to the personal attributes and emotions of a
consumer, including behavior, lifestyle, hobbies, risk aversion, and other traits. It
addresses the issue of why a consumer buys a particular product.
4. Behavioral - This factor in market segmentation pertains to analyzing the
nature of
the purchase made by a consumer, brand loyalty, usage level, and the benefits
sought by a consumer.
Example: Puregold and S&R Membership Shopping Case Analysis

Puregold and S&R Membership Shopping are both owned by Cosco Capital, Inc., a
multifaceted company in the Philippines. For its retail sector, the company
established
Puregold and S&R that cater to different consumer segments.
Puregold is Cosco Capital’s flagship retail chain in the country. This supermarket
chain is
involved in the business of trading goods such as consumer goods on a retail basis.
It
conducts its operations in different retail formats depending on the preferences of
the
consumers. Any consumer is allowed to buy goods from the store without the need
to
present any membership shopping card. Its target market includes the general
public, most
especially low- to middle-income shoppers and its neighboring stores.
On the other hand, S&R Membership Shopping is modeled with a warehouse club
concept
where the products offered are only sold to its registered members. Likewise, a
huge
percentage of its merchandise is directly imported from other countries. Its target
market
includes middle- to-upper-class consumers who prefer buying in bulks or large
quantities.
Targeting
After properly segmenting the intended audience, the next step is to decide which
segments
to focus on by taking into consideration their potential and commercial
attractiveness. In
line with this, it is very crucial to look at the profitability of each segment. Which
customer
groups will likely contribute to a higher profit rate? It is likewise important to
evaluate the
market size and growth of each segment. Is continuous growth probable or not?
How does
it perform compared to the other segments?
Tip
In order to target the best customer segments, try to conduct a PEST
analysis that will help in assessing any political, economic,
sociocultural, or technological barriers that can affect the strategy of
a business
Positioning
A product that is positioned accurately can be very impactful on the purchase
decision of a
consumer. First off, there must be a clear perception of what a consumer needs to
be able
to formulate a proper product positioning. Second, determine a unique selling
proposition
to be able to send a clear message to the consumers as to why they should
purchase a
specific product rather than those of the competitors. Lastly, develop a value
proposition
that will completely answer the needs and demands of the consumers toward a
product.
Four Elements of Product Positioning

In creating a new product, an effective positioning strategy will allow the consumers
to
recognize the distinct features and benefits of the product. Thus, every product
positioning
strategy should take into account the following elements:
1. Vision and mission
The vision and mission illustrate the reason why a product exists in the market. It
refers to the potential benefits or advantages that the consumers expect from the
product. Having a specified mission will help a business think of creative ways of
introducing its products to the market and devising ways for its potential growth.
2. Product category
The market is a big competitive zone where identical goods are offered at once. In
positioning a product effectively, it is important to know the type of product offered
to the market. If a business is setting its foot into a new market category, then this
is
a good time to penetrate the market and start acquiring loyal customers.
3. Customer pain points
Customer pain points simply refer to existing problems that customers experience
and are meant to be solved by the products and services created by businesses.
Identifying present customer pain points will guide a business on how to solve those
current dilemmas being experienced by the customers.
4. Product differentiation
If a product is placed in an oversaturated market, then it is vital to learn how to
differentiate it from its competitors. A business should think about the strong suits
of
its products that will make it stand out in a highly competitive market zone.
Product Positioning Statement
After musing on the aforementioned elements and after being armed with all the
context
needed to adopt an effective product positioning strategy, the next important
approach to
consider is crafting a product positioning statement. A product positioning
statement is a
statement that is strategically used by businesses to instill into the minds of the
target
market a positive image of their products and services. From a strategic marketing
perspective, this is the core of all product positioning techniques. It aims to convey
to the
customers how beneficial and useful a product is compared to its competitors.
A well-crafted product positioning statement must be able to describe the intended
audience of a product and the crucial reasons why customers should choose it over
all
others. It is a statement that makes the product different from its competitors.
Through this,
a business will be able to expound on the unique value proposition of its product,
which can
consequently help it in incorporating other marketing tactics.
“For young professionals who are seeking elegant yet affordable leather products,
The
Marikina Leather is the leading provider of custom-made leather goods that
uniquely
manufactures durable bags, shoes, and other novelties by utilizing a state-of-the-art
technology.”

Unit 8 Reporting

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Unit 8 Reporting

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Unit 8: The Marketing Mix as a Business

marketing approaches that should be performed by the entrepreneur. Developing an

In this lesson, you should be able to do the following:

● What do the consumers want from the product?

Unique Selling Proposition

Unit 8: The Marketing Mix as a Business

Types of Distribution Channels

Unit 8: The Marketing Mix as a Business

Pricing as a Marketing Activity

Five Common Pricing Strategies

Categories of Pricing Issues

Unit 8: The Marketing Mix as a Business

Packaging as a Marketing Tool

Product Positioning in Marketing Mix

Segmentation, Targeting, and Positioning (STP) Model

Example: Puregold and S&R Membership Shopping Case Analysis

Four Elements of Product Positioning

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